Mid cap massacre on the street

Today many midcap shares nosedived on the street. Tulip telecom which slumped by 36 %  led the decline.
Other midcap stocks like Glodyne,Sumeet Industries,Era infra too declined around 20 %.Market was abuzz with the rumors responsible for this fall but nothing was confirmed till the time of this post.

Triggering of the margin calls is supposed to be the main reason for this decline.Promoters of many of these companies had pledged their shares and these shares when turned up  for selling caused the havoc.


Another speculation which was rife on the street was the unwinding of the position by a p-note player fearing stricter norms in the offing.Volume was exceptionally high for the majority of these shares.